Skip to main content

tv   Real Money With Ali Velshi  Al Jazeera  February 23, 2014 2:30pm-3:01pm EST

2:30 pm
myanmar. as always thanks so much for watching al jazerra america i am morgan radford and "real money" is coming up next, you can always follow us for updates throughout the day on aljazerra.com. don't go in anywhere.
2:31 pm
this is "real money you are the most important part of the show join our live conversation on twitter use aj real money, ali velshi if like facebook. president obama met with his counterparts on wednesday, on the agenda, u.s. immigration reform, america's foreign-born population reached 40 million in 2011. that's 13% of the total population, 11 of that 40 million are believed to be undocumented. and more than half of those 11 million are thought to have come from or through mechanics dough, the debate over immigration reform as broken down in to two camps those that want to give undocumented workers some sort of legal strategies those that prefer to ship them out. where both sides can agree on is tightening enforcement along americas 2000-mile border with mexico. but this obsession with mexico and border security detracts in a deeper discussion about the economics of immigration. putting aside the fact that much
2:32 pm
of america's agriculture industry relies on my grand workers without whom, many argue, the price of your food would go up. america's high-tech industries rely more and more on immigrants of a different sort, highly educated and skilled immigrants and foreign workers, last year more than 819,000 foreign students studie studied in the d states. currents immigration rules put restriction on his those that try to stay on and work in this country. many high-tech forms trying to get around that by applying for an annual quota of h1 or temporary work visas. critics say companies abuse the visas to high low paid skilled workers from countries like india instead of spending more to train american workers to do the same jobs. now, last summer the u.s. senate passed a bill for comprehensive immigration reform. the nonpartisan congressional budget office estimates that that legislation if passed in to lay would increase employment by three and a half percent over
2:33 pm
the next two decades, and would grow the economy by 5.4% more than if otherwise would have grown over the same time period. an estimated 9.6 million new workers joining the legal workforce would mean more tax revenue for the federal government. that plus shifting spending away for to other priorities instead of border security would help lower budget deficits by $900 billion. now, it's not clear that that legislation will pass in the house and, estimates are estimates. but chew on this one, $20 billion a year, that's the estimated amount of payroll taxes lost each year from undocumented people who work off the books in this country. the congressional budget office is a nonpartisan federal exactly that analyzes date a for congress and caused a stir when it released analysis of a bill to raise the federal minimum wage from 7.75 to 10.10 saying it could lift 900,000 workers
2:34 pm
above the poverty line and estimated 16 and a half million low wage earners would see a bump in pay, but said raising minimum wage would put 500,000 jobs in jeopardy by 2016 as employers let workers go to save on costs. opponents of the minimum wage increase have sees odd that number the half a million, the white house says the even mats on unemployment do not represent the consensus view of economists i asked one of the most respected minds in u.s. economic and tax policy what he thinks raising the minimum wage would do to the economy, he has served as an adviser to presidential candidates since the year 2000 and most recently is one of the most very advisers to presidential candidate mitt rom now now with american enterprise institute. >> the thing that i can say is that i wish the white house would stop being so dishonest they points to this study that's been completely
2:35 pm
discredit ed a response ble blew it out of the water. effect that the cbo says it's doing a straight read of the data, people lose their jobs and the straight off is exactly what you said in the lead, 900,000 people or so will see their wages go up, 500,000 people will lose their job. i think that's a bad trade. i think that telling those 500,000 people, hey, look, you are out of luck is something that is really immortal to do and i think it highlights the democratic policy. [speaking at the same time] it's the second shot at them this year, we did obama just a few weeks ago. >> what is the morality of having a minimum wage that someone cannot be outside of the poverty level on? >> no, no, i think that is an absolute moral stance. ali, i think that you are right. that we as citizens should demand that folks don't live in extreme poverty in the u.s., but the fact is that we need to pony
2:36 pm
up. if we think that there are people who because their productivity at this is low enough or they have a coercive employer and they are not being paid enough we need to pro pro*eu provide them with benefits that lift them out of poverty and we need to pay the check and pay the tax that his pay the money to people and be straight up about the costs. the minimum sveum wage is a dodge. they are asserting social justice but on somebody else's time. they are telling the people that most need help the employers that try to create jobs that you have to bare all the costs for the justice that we want. if you want to provide social justice by lifting people out of poverty, we should cut them a check not say, hey, you, over there, job creator you gotta pay for all the poverty reduction and he is that's mat minimum age wage does. >> americans were borrowing more money than the final three months of lat year, household debts, mortgages, lawsuit owe
2:37 pm
loans, credit cards, student loans rows $180 billion compared to a year earlier. 11 1/2 trillion dollars that is the first year over year increase in-house hold debt since 2008. since the recession, it's still 9% lower than what it was in 2008. how do you read an increase in-house hold debt? is that great people are feeling strong they have jobs and credit or is that, ut-oh, this is dangerous? >> yeah, i think that on balance at this point in the cycle, it's a big positive. i think that it sort of depends where it happens, if we saw a spike in-house hold dead tk*et a month in to the crisis, then that would be eye five alarm require right now we know there is a lot of people putting off buying a new car or the new addition on their house because they are worried they might lose their job or might not get the loan.
2:38 pm
bangbanks are worried about loa. oans because people might lose their jobs. people want to get the slopes so that they can go out and buy the car they haven't bought for the last three or fewer years they are looking at their clunker and are out bore borrowing. that's a good sign. the funny thing that gives me paws a bit as you know you have covered it a lot on the show that the data have turned sour in the last month or so and maybe it's because of the weather, or maybe it's actually we are heading down again a little bit. and if we are heading down right on top of this wave of debt. >> that's complicated. >> that optimism last quarter could be misplaced and that's the thing of a cause of concern. >> you are a noted thinker and other people not noted as thinkers but the founder of venture tire capital firm tom perkins, kevin o'leary from shark tank. the ceo of nicole miller have launched this weed attack on
2:39 pm
poor people and low earners saying that you should get votes commensurate with your salary. what you earn, nicole miller guy saying that america's 99% is higher than the 99% in the rest of the world so the poor should stop complaining about it. kevin o'leary saying this gap between the rich and poor is motivate to go poor people they can look to the 1% and be like that. little weird, don't you think? >> you know, i think that you can have an academic debate about things it sounds like a lunch conversation in an comments department i have heard political therrists say so what if the election is for sale it gives the most value to the society. i have heard that in academic settings but it's easy to go overboard when you have a public discussion of such difficult, difficult concepts, obviously one person, one vote say bedrock of society. obviously, poor people in the u.s. are not doing so well.
2:40 pm
they have disproportionately borne the brunt of the prevention and we need to help them. the fact that this old study you have probably talked about on the show before where if you look at the average consumption of an american who lives below the poverty line it's higher than the average consumption in france and they look at actually detailed consumption data to do that. and if you want to talk international comparisons like that, then as an academic matter i think there is a place to have those conversations . [speaking at the same time] >> you have to have the right context, always a pleasure, kev kin,. next why cash up front may be squashing the american dream of owning a home. that and more as "real money" continues, keep it here. the stream is uniquely interactive television. in fact, we depend on you, your ideas, your concerns. >> all these folks are making a whole lot of money.
2:41 pm
>> you are one of the voices of this show. >> i think you've offended everyone with that kathy. >> hold on, there's some room to offend people, i'm here. >> we have a right to know what's in our food and monsanto do not have the right to hide it from us. >> so join the conversation and make it your own. >> watch the stream. >> and join the conversation online @ajamstream.
2:42 pm
>> 2014 will be a critical test for the housing market or so says realty track. it came out with findings in the latest survey of home affordability. they are saying that the monthly house payments rose 21% in the past three months of 2013 compared to the previous year and overall a 10% rise in median home prices and 33% rise in home mortgage rates and saying that 42% of the home sales bought with straight cash and that is the highest level since tracking this
2:43 pm
stuff. and you might be surprised who is doing the buying. >> in the communities with the signs these like cash is king and the investors are a reason for driving the home prices higher. they are not the new kids on the block. in fact, they have been going into distressed communities for a few years and buying the homes and fixing them up and renting them. what's new, dramatic up creases. >> i think that has driven up the prices quicker than expected because this is a new level of demand in the housing market that they have not seen before. >> it is estimateded they have purchased 219,000 homes in the u.s. since 2011 and phoenix and las vegas were hot and now turning to the southeast, atlantaing , cape coral, knox visit and memphis top the list.
2:44 pm
it is options like this one where the investors found homes to buy. one in four homes in that city are being sold to investors and to be sure, they are credited with stabilizing the housing market. one way to profit from it is bundling the homes into tools, like real estate trusts that traited on the stock exchain change. >> they are pushing the home prices up to more than the first home buyer can afford and we need them to be continue to be part of the market. >> the investment group blackstone is one of the biggest buyers of these homes and purchased 39,000 in the united states and the buyers account for a small fraction of the rental homes and not the prime reason for the price increases and home prices and rents across
2:45 pm
the country are going up as the real estate marketing and the economy is improving but still remains below peak 2007 levels. they say there is a key thing to keep in mind. this is profit seeking money making efforts and built on the numbers. as long as the prices and the houses are low enough, so they see attraction to buy them and rent them and sell it, they'll do it. >> those buyers are slowing or stopping the buying when they are not longer boosting the bottom line. mary snow, al jazeera. >> what happens if the investors decided to exit the housing market? what effect will that have? well, we don't know. this is a chart we are watching the homeowner ship rate is
2:46 pm
declining since peaking in 2004. it is dipped to 65.4% in 2013 and that is the lowest level since 1995. e smoke to the chief economist at trulia. i asked him why he believes that the homeowner ship rate is misleading. >> one of the reasons it hasn't risen is because of more renters. a lot of young people lived in their parent's homes or roommating and dropped out of the housing market and some are now coming back to the housing market as renters and the homeowner ship rape is lower than it would be not because they are moving from owning to renting but coming back into the housing market but first as renters. >> let's
2:47 pm
talk about what mary snow talked in the story and that is prices of homes or mortgage affordability rising higher, faster than incomes are, do you see that data? >> yes, the home prices are rising faster than incomes and mortgage rates are a full point over the past year and adding 10% of the cost to buying. looking longer term, prices are now back to just about the long term normal levels and mortgage rates are low by. did you recall the double, the rates were in the six's and before that in the 7, 8, 9 and in the 80s in the 10% range. so the mortgage rates are still low and that means when you take a longer term view, the affordability of buying a home is better today than it has been for most of the last decades.
2:48 pm
>> we are talking nationally, which isn't relevant to anybody looking to buy or sell the home, the differences are huge when you look across the country. >> you and i are two of the most expensive parts of the country, new york where 25% of the homes are within reach of the middle class and i'm in san francisco, 14% homes listed for sale are within reach of the middle class in parts of the midwest 80 or more percent are within reach. so affordability is a different story depending on where you are in the country. >> if you think you missed the opportunity, in some cases it is because there isn't enough inventory, not enough sellers, i live in manhattan and i get solicitations to sell my home, are we seeing a point where the prices are stabilizing because more people are prepared to sell?
2:49 pm
>> we are already beginning to see the slow downs in the price increases and because more homes are coming to the market. people are not feeling that on the ground yet, but the inventory is going up. you are going to see that in the spring's housing season and fewer of the investors competing with them to buy the homes. that is because the prices are higher. but for people that can still afford to buy they have more to choose from and fewer to compete with than people buying a year ago. >> there is the chart about the housing affordable. jed, thank you for being was. next, what's up with what's app. i bet you wish you came up with a simple app. next in the world of messaging app. keep it here.
2:50 pm
2:51 pm
al jazeera america. >> whats up, that's what everybody is asking when facebook announced they are buying the app. whatsapp is replacing the texting on the phone and sending
2:52 pm
the media and you just need access to a wireless service. 450 million monthly users and registering a million new users per day and the volume is equal to all the text sent worldwide. messaging is a big business these days and there are more apps that are cashing in. facebook's purchase caught the aword abuzz and for a giant looking to gain new users messaging apps are a smart bet and making up half of the top ten most down loaded apps worldwide outside of the games and offering the presence of the aging networks. whatsapp is found in emerging markets like mexico and south america and asia. we we chat
2:53 pm
dominating china. line is big in japan and talk with 133 million users saturates the the core ian market. the users pay a buck a year for the services. forgamers, playing a game while messages and we chat buy a soda from a vending more or giving money to celebrate the chinese new year. viber offering free voice calling and blackberry's im is bringing a messaging service and snap chat turned down the offer from facebook allows to send photos
2:54 pm
and videos that self-destruct in seconds. and avocado that offers send messages for lovers. what is the next big thing, i asked the vice president of global corporate communications that tracks the appses and counting google and microsoft among the clients. >> there is a lot going on. we did a report covering 2013 and the mobile apps and we realized that the platforms are really, really, big. so i think that whatsapp was on the radar and a lot of people using it outside of the u.s. and the price tag, you never know, but a lot of really interesting
2:55 pm
things for the social apps, lime, and a lot of them in asia are mon tiezing well. we are talking about a lot of serious dollars. candy crush has the app that they have, they make a lot of money, and go into the south korea market they did it for their app to do that. so a lot of the social messaging apps are about gaming and even about mobile comers. i was in beijing for weeks ago now and some of the guys in the office actually paid for the mcdonald's breakfast using the app and linked the mobile account with their chat. >> what is the motivating factor, why is any of this better than not using any of it? >> well, i will tell you, it is about communicating with people.
2:56 pm
we have really, there's really this movement to having a one on one communication and we'll talk to each other and sifrp approximately and easily without going to a phone and having a long conversation, hey, i want to know what you are doing at 6:30 type of thing and translates to the business fear. i have we chat here, and we use it in the office quite a bit. they have a lot of features and gaming and emoticons and the contacts here. i can have a number of groups, so every time i go the beijing i have a beijing group of the folks that are gathered there and we communicate and i don't blast the messages to 20 different people. >> you sold the old guy on it. thank you for letting us know why such a value in these things.
2:57 pm
>> my final thoughts, going back to the cloudy days and sliding into the great recession, at the time, the former federal reserve chairman didn't catch on to how much troubles that the economy was in and stood by day after day and assuring the american people that the economy was sound. now we know. detailed minutes of the fed meetings in 2008 have been released & in the early days they had no idea how bad that ta the things were, they worried about the inflation and not jobs. the fed wasn't sure that the decision to let leeman brothers to fail was the right one, it it was a decision that turned a
2:58 pm
normal recession into a global crisis. in fairness, no one really knew how bad it would get and most americans didn't real care that the bank was failing, to his credit he figured out bad it was and slashed the rates and coordinating the rescue with the central bank counter parts around the world. he went from the bottom of the class to the most improved student and fast, better late than never. that is the show for today and thank you for joining us. bernanke
2:59 pm
3:00 pm
>> there is no practical obstacle whatever now to the creation o

48 Views

info Stream Only

Uploaded by TV Archive on